Forex - Pound erases losses against dollar as Greece vote eyed
Investing.com
Published Jun 21, 2011 10:47AM ET
GBP/USD clawed back up from 1.6166, the daily low, to hit 1.6225 during early U.S. trade, easing up 0.13%.
Cable was likely to find support at 1.6109, Monday’s low and resistance at 1.6282, the high of June 15.
The pound weakened earlier, after Bank of England policymaker Paul Fisher defended the bank’s stance on low interest rates, despite above-target inflation.
Fisher, the bank's executive director for markets, said the central bank’s Monetary Policy Committee was determined to bring inflation, currently at 4.5%, back to its 2% target over the next two or three years.
But he added there are risks of both worsening inflation and weak growth leading to deflation.
"The MPC are trying to set the best path back to the inflation target, but even the best path is an extremely uncomfortable one," he said.
Also Tuesday, official data showed that the U.K. public sector borrowing fell in May, to GBP15.1 billion from GBP16.4 billion pounds in May 2010, just below economists' forecast’s for borrowing of GBP15.7 billion.
The pound was also lower against the euro, with EUR/GBP rising 0.40% to hit 0.8863.
Meanwhile, the U.S. National Association of Realtors said existing home sales declined broadly in line with expectations in May, down 3.8% to a seasonally adjusted annual rate of 4.81 million in May.
Analysts had expected existing home sales to decline to 4.78 million last month, from a downwardly revised 5.0 million in April.
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Written By: Investing.com
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